logajan@ns.UUCP (John Logajan x3118) (01/04/89)
My granddad use to say, "If you sell gumballs for just a penny each, people will buy them only when they really want them. But, if you give gumballs away for free, people will line up with boxcars and semi-trailers." The lesson is that pricing is a very powerful regulator. Not everyone who sets pricing always makes the right decision. Clearly PCP pricing is being set to maximize profits. Anyone who thinks differently should review market theory. Only the market itself will tell whether PCP has made the smart move. They have obviously attempted to cap everyone at 30 hours. Their scheme does have the previously noted flaw, multiple accounts. I am sure they will try to police this, but the dedicated "user" will find a way around it. Even in this case, they will raise their billing/usage ratio. Simply put, if enough people quit using PCP because of the 30 hour cap, then their net income will drop -- and they might again restructure prices. On the other hand, if they have tapped a bigger need, <30 hours, in the marketplace, then net income will rise. Who could fault them if they end up filling a bigger need????? Not I. -- - John M. Logajan @ Network Systems; 7600 Boone Ave; Brooklyn Park, MN 55428 - - ...rutgers!umn-cs!ns!logajan / logajan@ns.network.com / john@logajan.mn.org -